Busia’s Kshs. 800M Kiosk Scandal: How Corrupt Cartels Hijacked a Lifeline for Traders!

A major corruption scandal has rocked Busia County, implicating senior officials, including the governor’s office and Members of the County Assembly (MCAs), in an alleged multi-million shilling embezzlement scheme. The controversy revolves around a modern kiosk development programme meant to benefit towns such as Malaba, Nambale, Amukura, and Funyula. However, reports indicate that the initiative has become a breeding ground for corruption, with influential figures siphoning off substantial public funds.

The bulk of the misappropriated funds—estimated at Kshs. 800 million—is reportedly concentrated in Busia town, the county headquarters. Launched in 2023 as a flagship development project, the initiative was initially celebrated but has since drawn scrutiny due to inflated costs and manipulated tendering processes, allegedly orchestrated for personal enrichment.

John Onyango, Chairperson of the Busia Traders Association, has exposed how corruption infiltrated the project from the tendering phase. He claims that contractors and suppliers were hand-picked to channel funds to a select group of beneficiaries. Onyango further alleges that the corruption network extends deep into the county government, potentially implicating Governor Paul Otuoma.

This scandal follows another controversial move by the county government, in which traders in Busia town suffered losses exceeding Kshs. 1.5 billion due to demolitions. County Executive Committee (CeC) Member for Lands, Housing, and Urban Development, Peter Odima, defended the demolitions, citing the illegal occupation of public land. However, the move has fuelled resentment among local traders, who feel exploited by a predatory system.

A particularly troubling aspect of the corruption is the alleged profiteering by external investors. Wealthy individuals from Somali, Indian, Ugandan, Kikuyu, and Kisii communities are reportedly leasing the kiosks at exorbitant rates, sidelining local traders. Critics argue that this arrangement allows profits to be expatriated, depriving the county of vital revenue.

Mary Makokha, leader of the County Business Women’s Group, has condemned the practice, calling for fair leasing policies to support local traders, particularly in light of the region’s widespread poverty. She further highlighted that many beneficiaries appear to be politically connected individuals, including the governor’s allies and relatives, exacerbating the exploitation of small business owners.

Local organisations, including the Kenya National Chamber of Commerce and Industry (KNCII) and boda boda operators, have also decried the corruption, estimating that the county and national governments are losing hundreds of millions of shillings monthly. The corruption network allegedly operates with impunity, shielded by political influence and substantial financial gains.

Efforts to obtain statements from Governor Otuoma and CeC Peter Odima have been unsuccessful, as both have declined to respond to calls and messages, leaving public concerns unanswered.

The unfolding scandal has intensified scrutiny of governance in Busia County, with traders and business owners demanding transparency and accountability. As investigations progress, many question whether the county government will take decisive action to dismantle the corruption plaguing this critical development project.

Continues tomorrow…